@longtimelurker wrote:
@Anonymous wrote:
@longtimelurker wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:I own stock (worth $1800 now) that i have had a 120$+ gain since ive purcahsed it. Anyways I have a 1700$ balance on my discover card with 0% interest till early July. I would be able to get the balance down to around a 1000$ before it ends.
My question is this should i just take the 30$+ transfer fee to transfer it to my 0% BoA platinum plus card or would it be more beneficiary to sell the stock and use the proceeds to completely wipe the debt to 0?
Depends - do you expect the stock price to go up or down within the specified timeframe? Also be aware you have broker fees and capital gains to consider with the stock trade
Well, the stock is Amazon. Based on what ive been reading, I think the stock price has peaked in the low 900s. But then again its still Amazon which is a very successful company so who knows.
Im aware of the tax implications so thats not really an issue.
I have other debt, but i will certainly be able to pay those off before the 0% ends.
I only mentioned the taxes and broker fees as they serve to balance the equation with the BT fee you mentioned - in other words ask yourself whether the BT fee really is more expensive than the expenses resulting from the trade...
I understand what youre saying now, but to answer your question probably not since you put it that way. Broker fee was only 4.95 while the added capital gain taxes would be approximately 26$.
Im surprised the cap gains is so low on a $600 gain, or is the "added" the difference between short and long term capital gains? Unlike some, I would do the BT in this case, rather than a) lose some potential growth and b) have to pay some taxes which are at least close to the BT fee (if not more)
the cap gain is actually 120$ and the gain would be a short term gain which means it would get taxed as ordinary income.
Thanks for the advice. Im going to just hold on to the investment for now. I dont want to lose out on potential growth.
Oh sorry, yes you said $120 but for some reason I read that as you bought at $1200 and now it's $1800. I would probably still do the same (keep the stock) but now the choices seem closer to me.
When it's a wash between the sales fee and taxes, and the BT fee, do the BT.
I personally wouldn't be dumping Amazon shares with short term capital gains on them, heck I just bought 2 more shares the other day so wouldn't be dumping with long-term capital gains either 
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YMMV when it comes to investing of course.
I feel like I'm missing something as I'm reading this thread...
If your balance would be down to $1,000 by July, and you continue to pay roughly $200 per month on it, you'll have it paid off in another 5 months, and you'll have paid roughly $50 in interest (assuming 20% APR).
I definitely don't see how selling stock to pay off such a small amount of debt is the best way to go. Between the cap gains and broker fee, you're losing money vs a BT to a 0% card.
If you already have a 0% offer from an existing CC, transfering that $1000 would save you $20 in interest charges to Discover vs you selling stock now and paying $31 in fees and taxes.